The Hangman initially known as Karakasa or Paper umbrella. Hangman can be either in Green body or Red body. The Green Hangman is created when the open is less than the close during a large daily range. The Red Hangman is created when the open is higher than the close for the trading day. The lower shadow of the Hangman must be twice the length of the body.

        Hangman is a reliable bearish pattern which occurs at the top of the uptrend. Hangman shows that traders may fall into the trap of buying the share and being caught long at the top of the range. It forewarned of a potential bearish reversal by confirming with the following red body candlestick and indicates a selling signal.

Important Criteria :

• The lower shadow must be about two to three times longer than it's real body.
• No upper shadow or very tiny upper shadow.
• The real body is at the upper end of the trading range.
• Occurs at the top in the uptrend.
• The color of real body is not important.

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